Promotions Drive 39% Jump in Q2 Profit at Nordstrom (JWN)
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Nordstrom Inc. (NYSE: JWN) said Thursday that its second-quarter profit jumped nearly 39 percent from last year, as shoppers took advantage of the retailer’s sales.
The upscale department store operator reported quarterly earnings of $146 million or 66 cents per share, up from $105 million or 48 cents per share in the same quarter last year.
Revenue for the company rose nearly 13 percent to $2.52 billion in the three month period ended July 31 from $2.23 billion last year as both sales and credit card revenue increased. Same store sales, or sales at stores open at least one year rose 8.4 percent.
On average, analysts had been looking for earnings in the quarter in line with Nordstrom’s results on sales of $2.40 billion.
Same store sales rose 9.9 percent at Nordstrom stores, but fell nearly 1 percent at Nordstrom Rack locations in the period.
Nordstrom Chief Financial Officer Mike Koppel said that the company does not expect to see its higher-income clientele to shy away from its stores in the near term, even with the continued fears about the economy’s stability.
"We're fully prepared to continue to operate in that market and feel good about the strengths within our portfolio to take advantage of those opportunities," said Blake Nordstrom, the company's president.
Looking forward, the company reaffirmed its outlook for earnings in 2010 with a range of $2.50 to $2.65 per share, compared to the analyst consensus of $2.62 per share.
Nordstrom shares have fallen more than 5% amid the earnings, last trading around $31.75.
The upscale department store operator reported quarterly earnings of $146 million or 66 cents per share, up from $105 million or 48 cents per share in the same quarter last year.
Revenue for the company rose nearly 13 percent to $2.52 billion in the three month period ended July 31 from $2.23 billion last year as both sales and credit card revenue increased. Same store sales, or sales at stores open at least one year rose 8.4 percent.
On average, analysts had been looking for earnings in the quarter in line with Nordstrom’s results on sales of $2.40 billion.
Same store sales rose 9.9 percent at Nordstrom stores, but fell nearly 1 percent at Nordstrom Rack locations in the period.
Nordstrom Chief Financial Officer Mike Koppel said that the company does not expect to see its higher-income clientele to shy away from its stores in the near term, even with the continued fears about the economy’s stability.
"We're fully prepared to continue to operate in that market and feel good about the strengths within our portfolio to take advantage of those opportunities," said Blake Nordstrom, the company's president.
Looking forward, the company reaffirmed its outlook for earnings in 2010 with a range of $2.50 to $2.65 per share, compared to the analyst consensus of $2.62 per share.
Nordstrom shares have fallen more than 5% amid the earnings, last trading around $31.75.
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